Ascension Rises: Hospital Venture Group Gets More Muscle
This article was originally published in Start Up
Ascension Health Ventures, already the preeminent hospital-sponsored venture group, secured $200 million from its original sponsor, Ascension Health, as well as two other Catholic-based hospital systems.
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Brief summaries of recent medtech market and industry developments. This month we cover results of St. Jude’s FAME II fractional flow reserve trial, a breakthrough technology for treating vascular occlusions, and analysis from START-UP magazine’s second annual Life Science Venture Capital Survey.
The entire venture capital industry is facing difficult times. But few are taking as hard a hit as medical device investors. In our survey of 100 institutional and corporate VCs, 65% of the venture capitalists who said they invest primarily in medical device companies say they’re feeling “negative” about “the current state and future of VC.” Only 17% say they feel positive, with the remainder feeling neutral. Not surprising, device VCs’ worries center around limited partners and the FDA. Limited partners are demanding strong returns before re-upping with new funds, and the FDA, while improving, is holding a firm line in issuing new approvals. Device VCs keep looking for innovative technologies and waiting for opportunities to improve.
Our second annual survey of institutional and corporate VCs puts FDA, public markets, and limited partner support high atop a long list of concerns, although the attitude toward regulators is on the mend. A notable number of respondents also say they’ll have to accept lower terms and shrink ambitions as they raise new funds.